Music House is a registered charity. It cares for orphans aged 0-18 years within the St. Ann area. This children's hospice is dedicated to enhancing the quality of life and providing specialist care and support for the resident children. The facilities include 5 classrooms, teenage room for quiet reflection, multi-purpose gym and art and craft area. There is also a multi-purpose room where they provide music and drama lessons, group activities or for open days, plays and other activities when persons come to visit.

The charity has demanding financial needs. Music House has to raise $250,000 every month to keep the doors of the hospice open. For example, $50, 000 is needed each month to pay the staff, $5,000 for medical cover, $10,000 for guidance counselling support, $60,000 for pharmacy and sundry expenses, $30,000 for utilities and so on. A further $2 million is also needed to build, equip and run the new teenager wing for 12 months.

Music House has a number of income sources. It relies heavily on donations from the public. For example, it has a website where donations can be made online. A proportion of income is generated by organizing special fundraising events. Examples for 2022 include a fish-fry, a comedy night, a music night, a Christmas Concert and sponsored trek to Seville Great House. It also runs a callaloo farm and small chicken farm from which it helps to feed the children at the hospice. It sells the plastic and glass bottles (packaging) from the drinks and household products that have been donated by the general public. These re-usable containers are bought for recycling at the local drinks and household chemical (cleaning).

Finally, like many other charities, Music House enjoys the support of a number of celebrities. The comedian and actor Christian 'Johnny' Davy, the actress Dahlia Harrison, the St. Ann United goalkeeper Tapper Wadmore, the reggae grammy winner Shubba Runkus and the entertainment duo Ety and Fancy Puss are just a few of the local celebrities that support Music House.

a) 'Charities have specialized aims.' Explain what this means using the case as an example. (2 marks)

b) Describe how Music House finances its activities. (6 marks)

c) Examine the role that the celebrities mentioned in the case play in the running of Music House. (6 marks)

d) Explain how Music House faces competition. (6 marks)

e) Analyze the ways in which Music House resembles a profit-making organization. (8 marks)

f) Formulate a possible receipts and payments account for Music House, based on data from the case study. (10 marks)

g) How might a trading surplus be used by Music House? (2 marks)

Total (40 marks)